New regulations – Vietnam Seaports Associationhttp://www.vpa.org.vn
Sat, 14 Sep 2019 14:15:12 +0000en-UShourly1https://wordpress.org/?v=4.7.5http://www.vpa.org.vn/wp-content/uploads/2017/06/cropped-logo-vpa-144-144-32x32.pngNew regulations – Vietnam Seaports Associationhttp://www.vpa.org.vn
3232City to tackle smuggling, trade fraud at porthttp://www.vpa.org.vn/city-tackle-smuggling-trade-fraud-port/
Tue, 11 Jul 2017 03:47:49 +0000http://www.vpa.org.vn/?p=2649HCM City plans to step up enforcement against smuggling and trade fraud to cope with the increasing number of violations, especially at Cát Lái Port in HCM City. A number of smuggling cases have taken place at international ports, especially at Cát Lái Port, the country’s largest international container port. Since early 2015, the Customs …

]]>HCM City plans to step up enforcement against smuggling and trade fraud to cope with the increasing number of violations, especially at Cát Lái Port in HCM City.
HCM City authorities seize containers of smuggled air conditioners and other electronic goods. — VNA/VNS Photo Mạnh Linh

A number of smuggling cases have taken place at international ports, especially at Cát Lái Port, the country’s largest international container port.
Since early 2015, the Customs Department has detected nearly 500 smuggling and trade fraud cases at Cát Lái Port.
In 2015, there were 165 cases, and 206 cases in 2016. In addition, there were 107 cases in the first half of this year.
At the port border corridor area, the HCM City Border Guard force has uncovered five cases since January, including the smuggling of goods worth up to billions of Vietnamese đồng.
According to the Customs Control Division of the city’s Customs Department, the number of violations and cases indicating violations (now being verified by agencies) is actually much higher than reported.Loopholes
The current system of inspections at Cát Lái Port leaves a loophole that allows enterprises to smuggle.
When an enterprise completes e-customs declarations, for example, the computer system will classify the goods into one of three colour categories: red, yellow and green.
If classified as red, the shipment will be directly inspected by the customs officer.
If yellow, the shipment will not be inspected and the customs officers will only check the documents.
For green, the goods are exempt from inspection.
The customs classification system is based on the history of the company (whether it observes customs regulations and completes tax obligations).
However, experts warned this system has caused challenges for detecting smuggling and trade fraud at the port.
The company can follow regulations today, while it doesn’t necessarily mean that the next time the company will not violate regulations, experts said.
Several smuggling enterprises have even hired businesses classified as green to complete e-customs declarations in order to smuggle goods into the country.
The HCM City Police and Ministry of Public Security have discovered many smuggling cases related to businesses classified as green or yellow.
Colonel Nguyễn Hồng Dũng, chief of the Crime and Drug Prevention Division under the HCM City Border Guard, said some businesses engaged in smuggling were taking advantage of a regulation that allows them to temporarily import goods for re-export.
For example, after goods imported for re-export are cleared at Cát Lái Port, instead of being transported straight to Cambodia for re-export according to regulations, the enterprises transport the goods to warehouses in HCM City or Long An and Tây Ninh provinces and remove the goods from the containers, he said.
The enterprises then transport the empty containers in vehicles or on vehicles carrying vegetables to Cambodia to make their operations appear legal, Dũng said.Solutions
The HCM City Customs Department has recommended raising the fine for violations of “temporarily importing for re-export” as the current penalty of VNĐ10-30 million (US$450-1,300) is too low.
To prevent smuggling or trade fraud at Cát Lái Port, the customs department and other agencies have proposed installing screening machines at the port facility, with monitoring done by multiple functional units (instead of only one) in order to avoid corruption.
In the long run, it should be taken into account that all imports and exports at ports must be controlled, inspected and investigated by customs clearance offices instead of being based on classification systems (red, yellow and green).
Lê Nguyên Linh, deputy head of the Customs Department of the Sài Gòn Port – Area 1, said the unit was implementing many solutions to prevent smuggling at the port.
The solutions include strengthening customs inspection and promoting dissemination of information for enterprises to comply with customs regulations.
He said it was vital to raise public awareness about the harmful effects of smuggling, trade fraud and counterfeit goods.

]]>Cai Lan seaport launches new route linking six nationshttp://www.vpa.org.vn/cai-lan-seaport-launches-new-route-linking-six-nations/
Thu, 08 Jun 2017 15:38:48 +0000http://vpaen.vn/?p=1360ACS international maritime route has been launched at Cai Lan International Container Seaport linking six nations including India, Malaysia, Singapore, Vietnam, China and South Korea on Tuesday. The route has been developed by the alliance of two shipping lines Huyndai Merchant Marine and Gold Star Line. On the same day, Cai Lan port in the …

]]>ACS international maritime route has been launched at Cai Lan International Container Seaport linking six nations including India, Malaysia, Singapore, Vietnam, China and South Korea on Tuesday.

The route has been developed by the alliance of two shipping lines Huyndai Merchant Marine and Gold Star Line.
On the same day, Cai Lan port in the northern province of Quang Ninh received Liberian Huyndai Premium with the capacity of 5,023 TEUs, which is the largest container vessel landing at the northern region’s ports.

Two large vessels are scheduled to travel in this route every week. Containers will be shipped directly from Singapore, Malaysia and India to Cai Lan port and transported to other ports in the northern region with a barge system instead of through Hai Phong seaport as before.

Large vessel exploitation will help customers and shipping lines save transport costs and time.

]]>Personnel shortage keeps logistics trade backwardhttp://www.vpa.org.vn/personnel-shortage-keeps-logistics-trade-backward/
Thu, 08 Jun 2017 15:36:50 +0000http://vpaen.vn/?p=1357Vietnam ranks very low in logistics development among ASEAN members, speakers said at an annual general meeting held last week in HCM City by the Southeast Asian Federation of Forwarders’ Associations. It needs support from more developed members and international logistic associations, they said. Together with Laos and Myanmar, Vietnam had the lowest logistics development …

]]>Vietnam ranks very low in logistics development among ASEAN members, speakers said at an annual general meeting held last week in HCM City by the Southeast Asian Federation of Forwarders’ Associations.
It needs support from more developed members and international logistic associations, they said.

Together with Laos and Myanmar, Vietnam had the lowest logistics development ranking in the regional grouping, said federation chairman Masli Mulia.

Meanwhile, more developed member nations should provide assistance in keeping with the aim of improving logistics within the bloc, he added.

While Vietnam has paid more attention to and developed its logistics industry over the last 10 to 15 years, other markets including Singapore, Thailand, Malaysia or Indonesia have started several decades earlier, even a hundred years, Mulia said.

The logistics industry in Vietnam was severely hampered by the lack of qualified personnel, which is also the largest stumbling block to its growth, industry insiders said.

“It is incredible that logistics, which contributes greatly to the country’s economic development, is suffering such a serious shortage of personnel and [the problem of] unprofessional skills,” said chairman of Vietnam Freight Forwarders Association Bui Ngoc Loan.

A report from the association said the local labor market met only 40 percent of the requirements of an industry that was growing at 20 to 30 percent a year and contributed 15 to 20 percent to the nation’s gross domestic product (GDP).

About 600 businesses involved in logistics in Vietnam employ 35,000 to 40,000 people, the report said.

Loan said schools and universities were unable to meet demand from the industry for people to work at ports, in forwarding agencies, in shipping and customs services.Unprofessional

Tran Anh Dung, executive director of Vietnam Trading Logistics and Shipping Services (Vinatraco), said he was not satisfied with the professionalism of employees that he hired. His firm had to hold several training courses at work and even send employees to schools for further training, he said.

Dung said local logistics businesses were also facing a high labor turnover, with Vinatraco recording 30 to 60 percent every year. A source from the Saigon Shipping Company said human resources quality and availability were big issue for local businesses. Professional skills were at a premium, he said, adding that the firm was recently “robbed” of its five best employees by rivals who offered better salaries and better working environment.

The industry was growing as it offered opportunities and easy access for small and medium-sized enterprises to set up their business without too many conditions. This boom created more pressure on finding workers from a limited human resource pool supplied by schools or universities that only offer logistics courses for limited periods, said Dung.

Phan Van Quan, deputy general director of Dragon Logistics, said it was difficult to hire workers with the professional as well as foreign language skills needed to work in a setting that involved dealing with international partners.

Vietnamese employees were less professional and were cautious in dealing with special high risk commodities as they had experience only with normal ones, said Quan.

In other countries, forwarders were doing 90 to 95 percent of logistics involved in international trading, but Vietnamese forwarders only did half of this work, said chairman of air forwarding firm Vina Freight Do Xuan Quang. The remaining work was done by the trading companies themselves, he sai

Policy support

Quang, also director of the association’s Training and Human Resource Department, said it needed a further 12,000 workers to support development of the industry that was growing alongside the development of infrastructure at airport terminals, sea ports and customs services.

Chairman Loan said the association would be unable to do its job if the government did not provide support that logistics businesses in other countries received from their governments.

Quang added logistic firms should be recognized legally as non-vessel operators of common carrier instead of forwarding agents to avoid disputes that have arisen because the role of the agent in trading transactions was not clear in Vietnam to date.

]]>Container pavilion at transport logistic China 2010: Asia spurs on container transport worldwidehttp://www.vpa.org.vn/container-pavilion-transport-logistic-china-2010-asia-spurs-container-transport-worldwide/
Thu, 08 Jun 2017 15:34:10 +0000http://vpaen.vn/?p=1354The International Tank Container Organisation (ITCO) and the Container Owners Association (COA) are sending their members and exhibition containers on a trip to Shanghai in June, where they will be signalling the revival of the container business by taking a container pavilion at transport logistic China. Asia’s most important exhibition for logistics, telematics and transport …

]]>The International Tank Container Organisation (ITCO) and the Container Owners Association (COA) are sending their members and exhibition containers on a trip to Shanghai in June, where they will be signalling the revival of the container business by taking a container pavilion at transport logistic China. Asia’s most important exhibition for logistics, telematics and transport is taking place from 8 to 10 June 2010 in China at the Shanghai New International Expo Centre (SNIEC).

Container transport worldwide has been showing signs of recovery since the start of 2010. Container shipping suffered particularly badly during the economic crisis, but AXS-Alphaliner is now reporting a slow but steady increase in the volume of goods. The thriving Asian economy China overtook Germany as export world champion in 2009 is driving this development in particular. However experts do not expect supply and demand to even out again until 2012 at the earliest.

ITCO and COA members also want to benefit from the now ever-increasing east-west container traffic. At transport logistic China, from 8 to 10 June in Shanghai, over 20 companies will present all aspects of the safe transportation of mainly liquid products such as chemicals, gas or foodstuffs. ITCO president Reg Lee says Our participation reflects ITCO’s commitment to the Chinese market, which is increasingly becoming one of the most important sectors for the tank container business. Bernard Isoard, Chairman of the Container Owners Association adds: Shanghai 2010 is the most important meeting-point in the COA’s calendar. We will be discussing key issues relating to container transport, leasing, management and associated sectors.

Leading tank container operators such as Stolt, Hoyer, Suttons, VOTG, Newport and the InterBulk Group have already agreed to participate in the container Pavilion, as have tank container leasing companies such as Eurotainer, GE SeaCo, Trifleet and Multistar.

China has established itself as the main production centre for tank containers, and two of the leading manufacturers, CIMC and NT Tank, will also be exhibiting in the Pavilion. In addition, two of the main producers of tank container components, Girard and Perolo, will be taking part. The latest container technology will be on show in the Pavilion, with Langh Ship presenting its solutions for transporting steel coils. In addition, coatings specialist Valspar will be exhibiting its new range of environmentally-friendly materials, and the latest innovations in flexitank technology will be promoted by Environmental Packaging Technology.

Container certification is also an integral aspect of container manufacturing and management. Two of the world’s leading container classification societies, Lloyd’s Register and German Lloyd, will be presenting their services to the container shipping and tank container markets.

As part of transport logistic China, and complementary to the exhibition, two trade events on container transport are taking place on 9 June: the first is the Bremen Container Security Conference Solutions for Enhancing Container Security Worldwide, organised by the Bundesvereinigung Logistik (BVL) (German Logistics Association), the German Chamber of Commerce in Shanghai and the Bremen Senate for Economic Affairs and Ports. The objective is to find a European solution, based on the US example of fully scanning their shipping containers, for instance by the use of satellite surveillance. Such a system is to be presented and discussed.

As part of transport logistic China, and complementary to the exhibition, two trade events on container transport are taking place on 9 June: the first is the Bremen Container Security Conference Solutions for Enhancing Container Security Worldwide, organised by the Bundesvereinigung Logistik (BVL) (German Logistics Association), the German Chamber of Commerce in Shanghai and the Bremen Senate for Economic Affairs and Ports. The objective is to find a European solution, based on the US example of fully scanning their shipping containers, for instance by the use of satellite surveillance. Such a system is to be presented and discussed.

About transport logistic China
transport logistic China, the 4th International Exhibition for Logistics, Telematics and Transport, is being held at the Shanghai New International Expo Centre in China from 8 to 10 June 2010. 431 exhibitors from 46 countries presented their products and services at transport logistic China 2008 and Air Cargo China 2008. Over 11,215 visitors from 77 countries attended the international exhibition, which also featured an extensive programme of related events and conferences. For further information, go to: www.transportlogistic-china.com.
About Messe M’nchen International (MMI)
Messe M’nchen International (MMI, Munich Trade Fairs International Group) is one of the world’s leading trade-fair companies. It organizes around 40 trade fairs for capital and consumer goods, and key high-tech industries. Each year over 30,000 exhibitors from more than 100 countries, and over two million visitors from more than 200 countries take part in the events in Munich. In addition, MMI organizes trade fairs in Asia, Russia, the Middle East and South America. With six subsidiaries abroad in Europe and in Asia and 64 foreign representatives serving over 90 countries, MMI has a truly global network. Environmental protection and sustainability are key priorities in all MMI’s operations, at home and abroad.

]]>Vietnam Striving to Reduce Logistics Costshttp://www.vpa.org.vn/vietnam-striving-reduce-logistics-costs/
Thu, 08 Jun 2017 15:31:11 +0000http://vpaen.vn/?p=1351Despite being rather a new sector in Vietnam, logistics has proved its importance in the country’s socio-economic development. However, the development of this potential service is facing many big challenges. Burden of costs Logistics is a process which is carried out to minimise costs for the identification of location and storages of goods sources from …

]]>Despite being rather a new sector in Vietnam, logistics has proved its importance in the country’s socio-economic development. However, the development of this potential service is facing many big challenges.

Burden of costs

Logistics is a process which is carried out to minimise costs for the identification of location and storages of goods sources from origins via many different activities to the final consumption places. In developed countries such as Japan and the US, logistics fees account for 10 per cent of their GDP.

In Vietnam, logistics development helps ensure both time and quality for business and production activities of other services. The logistics service is very attractive, which explains why the number of businesses registered to operate in logistics is sharply increasing and particularly the service is applied in all enterprises.

Nevertheless, the Vietnamese logistics industry is coping with several difficulties, including weak transport infrastructure, a big volume of inventory, complicated administrative procedures and high investment fees for services. In a developed economy, companies often use logistics for transport and distribution. But, Vietnamese businesses have a habit of self-controlling supply chain system; therefore, they do not gain high results in their operations. These are a big barrier for the development of the logistics sector in Vietnam. Ports overload is an obvious evidence for the country’s logistics weakness.

Using professional logistics services also helps businesses to control the supply chain effectively by deciding transport frequency and the inventory volume. But, most of Vietnamese companies do not think of these advantages, resulting in an increase in logistics fees. Logistics fees make up some up to 25 per cent of Vietnam’s GDP, 9.5 per cent and 21.6 per cent higher than that of the US and China respectively. The main reason for this is overload of Vietnamese ports, airports and railways which are also in a bad condition. Vietnam has to bear high transport costs which hold 30 – 40 per cent of product costs; meanwhile, the rate is only 15 per cent in many countries worldwide.

The high costs are a big difficulty for Vietnam to take advantages of cheap labour and weakens its products’ competitiveness.

Opportunities to develop

Joining the WTO has resulted in fiercer competition for Vietnam’s logistics sector. Under the WTO commitments, Vietnam will allow wholly foreign-owned maritime and logistics companies to operate equally in the country. This will lead to a challenge for local businesses in the home market.

The Vietnamese government has worked out many measures to reduce logistics costs, boosting exports, which have gained initial positive results. According to the latest report named “Vietnam Logistics 2009” released by the UK’s Transport Intelligence, Vietnam’s logistics sector will be improved in the five years to come as the local government is pouring more investment into logistics infrastructure. Vietnam has invested billions of USD to upgrade logistics infrastructure. Besides, the government has also encouraged foreign firms to invest in Cai Mep International Port in Mekong Delta with a total investment of US$628 million. Once completed, the port is expected to handle 1.7 million tonnes of cargo annually. The country has also invited foreign companies to build Long Thanh International Airport in southern Dong Nai province in 2015,

One of the outstanding advantages for Vietnam’s increased transport investment is forming roads linking the country and its neighbouring countries. Kun Ming-Ha Khou- Con Minh ,Ha Khau-Hanoi-Haiphong will permit road transport firms TNT and Kerry Logistics to connect Vietnam with its regional road network, no need using services from seaports and airports, expected to lower 30 per cent of international transport fees by 30 per cent.

]]>Poor logistics industry retards economyhttp://www.vpa.org.vn/poor-logistics-industry-retards-economy/
Thu, 08 Jun 2017 15:28:44 +0000http://vpaen.vn/?p=1348Demand for logistics services has risen rapidly, but the plan to develop a professional logistics centre in HCM City is still on the drawing board, experts say. In recent years, the country poured money into infrastructure projects, but the lack of a professional logistics industry was retarding the competitiveness of the economy, according to experts. …

]]>Demand for logistics services has risen rapidly, but the plan to develop a professional logistics centre in HCM City is still on the drawing board, experts say.

In recent years, the country poured money into infrastructure projects, but the lack of a professional logistics industry was retarding the competitiveness of the economy, according to experts.

With 600 to 700 logistics companies out of a total of 800 to 900 in the country, HCM City has many advantages to develop a logistics industry, especially in marine, interior waterways, air, rail, road and pipeline transport services.

In an effort to develop a seaport and interior waterway systems, the city government last year ordered the HCM City Export Processing Zone Authority (Hepza) to map out a scheme to build a professional logistics hub for the 2010-20 period. But to date, the plan has not been carried out because of disagreements among agencies, according to Nguyen Van Minh, director of the Industrial and Information Service Centre under Hepza.

Currently, most logistics services, including transportation, warehousing and yard storage of goods and cargo were done by foreign companies, Minh said.

According to the Viet Nam Freight Forwarders Association, domestic logistics companies can meet only 25 per cent of local demand.

With the small size and limited ability of local companies, including out-of-date technology, the companies can offer only limited services.

Marine transportation services -a key logistics services – transport 90 per cent of import-export cargo, but local companies can meet only 18 per cent of that demand, according to the Viet Nam Maritime Administration.

Demand for logistics services is expected to soar, and will become a key economic sector, contributing up to 15 per cent of the country’s total GDP, experts have said.

More international companies are eager to join the Viet Nam market.

Under Viet Nam’s WTO commitments in the logistics sector, restrictions on the percentage of foreign capital contributions, as well as other restrictive conditions, will be gradually removed. By 2012-14, capital contributions can be wholly invested from foreign sources.

Experts said the city should consider hastening development of a professional, local logistics industry before it was too late.

]]>United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea (The Rotterdam Rules) signed on Sept. 23, 2009http://www.vpa.org.vn/united-nations-convention-contracts-international-carriage-goods-wholly-partly-sea-rotterdam-rules-signed-sept-23-2009/
Thu, 08 Jun 2017 15:23:59 +0000http://vpaen.vn/?p=1345The new United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea, the Rotterdam Rules, describes the rights and obligations of all parties with an interest in the carriage of goods by sea. The Rotterdam Rules bring more clarity regarding who is responsible and liable for what, when, where …

]]>The new United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea, the Rotterdam Rules, describes the rights and obligations of all parties with an interest in the carriage of goods by sea. The Rotterdam Rules bring more clarity regarding who is responsible and liable for what, when, where and to what extent. The application of the new convention will make international trade easier and lead to a reduction in costs.

It is an updated version of earlier conventions. These conventions were so outdated that judges were reinventing the law individually. Regional solutions are inefficient, however, because 90 per cent of maritime shipping is international. With the new treaty, uniformity is restored. This makes trade clearer and more efficient. New developments, such as container transport and electronic data interchange did not feature in the old conventions. Account was also taken of the wish to include combined transport by sea and land in one treaty.

In the event of a stranded ship, a stolen container or damaged cargo, it is now stated more clearly who is responsible and liable for what. In contrast to the earlier conventions, other parties in the chain, such as stevedores, now bear partial liability too. For carriers, liability for damage to the cargo has been increased. There are also clear obligations for the shippers. They must ensure, for example, that the goods are ready for transport in good time. Containers and trailers must be loaded in such a way that they can reasonably withstand the sea voyage. If damage occurs, the legal process has been simplified. The limitation period for this has been extended from one to two years for countries which are parties to the Hague and Hague-Visby Rules, which have the greatest number of Contracting States. Furthermore, the name and address of the carrier must be stated on the transport document.

The Rotterdam Rules will be applicable to contracts for the carriage of goods by sea and also relate to connecting transport by land. As a result, multimodal transport can be covered by one contract and one legal regime applies.
The Rotterdam Rules set out the legal infrastructure for the development of e-commerce in maritime transport. This not only involves electronic transport documents, but also completely paper-free transport. The processing of cargo flows via IT will be made easier, at the expense of actual paperwork. The shorter processing times and reduced chance of mistakes will lower costs.

The Rotterdam Rules will create more possibilities for the shipping lines and terminals to store cargo further from the ship whilst awaiting acceptance from the consignee. This will prevent congestion in the port.
Why are the Rotterdam Rules interesting for the average person?

The convention describes the rights and obligations of all parties with an interest in the carriage of goods by sea. In the convention, the rules are coordinated internationally. As a result, international trade and transport can take place more effectively and more efficiently.

Countries with an open economy that are dependent on foreign trade, which includes many countries in the world, including developing and landlocked countries, benefit from the increased efficiency of international trade and transport.

In 2007 it is estimated that the industry transported over 8.0 billion tons of cargo,equivalent to a total volume of world trade by sea ofover32 thousand billion ton-miles. This is 80 per cent of the total world trade volume. Without shipping the import and export of goods on the scale necessary for the modern world would not be possible (Source: United Nations Conference on Trade and Development (UNCTAD).
Total trade volume by sea is made up of the following kinds of goods (2007):
Oil: 2.7 billion tons (33 per cent)

The UN General Assembly recommended that the UN Convention be known as the Rotterdam Rules in recognition that the Netherlands is hosting the official signing of the Convention.
Click Here: United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea (The Rotterdam Rules) signed on Sept. 23, 2009

]]>Gov’t adopts solutions to attract foreign investmenthttp://www.vpa.org.vn/govt-adopts-solutions-attract-foreign-investment/
Thu, 08 Jun 2017 15:21:40 +0000http://vpaen.vn/?p=1342The Government today issued six urgent solutions to further attract, fruitfully manage and use foreign investment capital in the context of the global economic crisis. First of all, the Government urges ministries, sectors and local authorities to review and update regulations relating to investment and business, issue new preferential policies to encourage foreign investment and …

]]>The Government today issued six urgent solutions to further attract, fruitfully manage and use foreign investment capital in the context of the global economic crisis.

First of all, the Government urges ministries, sectors and local authorities to review and update regulations relating to investment and business, issue new preferential policies to encourage foreign investment and disbursement.

Secondly, all the approved planning schemes will be publicized and the site clearance sped up. The planning work must be carried out in line with the Law on Investment’s stipulations.

Fourth, the Government wants to perfect legal documents on investment cooperation in the field of education and training to facilitate foreign investors engaging in training laborers at all levels, restructure workforce and qualify local laborers.

In the time to come, the central and local authorities will closely cooperate in licensing and managing foreign-invested projects.

Last of all, the Government will design policies to allure multi-national corporations as well as key trade partners, disseminate information about key projects for foreign investors in 2006-2010, and set up investment promotion bodies at central and local levels.

Besides the above six solutions, the Government also vows to speed up administrative reforms, and anti-corruption; maintain regular dialogues between the Government and ministerial leaders and investors.

]]>Logistics boom exposes unqualified workforcehttp://www.vpa.org.vn/logistics-boom-exposes-unqualified-workforce/
Thu, 08 Jun 2017 15:14:52 +0000http://vpaen.vn/?p=1338The relatively nascent logistics sector in Vietnam has grown rapidly over the last decade but it is hampered by weaknesses including a dearth of qualified staff and a lack of professionalism, heard a conference Monday. Before 2000, there were not many Vietnamese firms involved in the sector compared to the hundreds of national companies and …

]]>The relatively nascent logistics sector in Vietnam has grown rapidly over the last decade but it is hampered by weaknesses including a dearth of qualified staff and a lack of professionalism, heard a conference Monday.
Before 2000, there were not many Vietnamese firms involved in the sector compared to the hundreds of national companies and joint ventures with overseas companies that currently operate in the market.
Do Xuan Quang, director of Human Resources Training and Development at the Vietnam Association of Freight Forwarders (VIFFAS), said there were many factors behind the logistics boom in Vietnam.
The development of the air and sea-freight industry in recent years and the official recognition of logistics as a business under the Commercial Law in 2007 were major factors, he said.

Big improvements in Vietnam’s storage facilities and fast tracking of goods through the customs department’s new and simplified procedures also created more room for the sector to grow.

A VIFFAS report says Ho Chi Minh City has about 600 logistics enterprises out of a total of 800 nationwide.
Experts said the fast pace of growth in logistics would help Vietnam surpass its neighbors including Thailand (1,100 companies), Singapore (800), Indonesia and the Philippines (700-800 each) in terms of the total number of registered firms.

Vietnam ranked fifth after Malaysia, China, Thailand and Indonesia in the World Bank’s survey of logistics performance index 2009 for the East Asia region.

The assessment was based on several categories including customs procedures, infrastructure, logistics competence and tracking ease.

Quang said a typical weakness of the home industry was the small size of Vietnamese firms and a lack of professionalism among its workforce.

“Most companies can only handle parts of logistics works,” he told Thanh Nien Daily. “The technology being used is at a low level compared to other regional countries.”

Bui Van Quy, deputy director of the Saigon Newport Holding Company, noted that: “Among the leading logistics joint-ventures in Vietnam, foreigners still predominantly manage the operations.
“The logistics boom has led to a shortage of qualified workers who have a solid knowledge of foreign trade, international payments and customs law,” he said.

According to VIFFAS, its 120 member companies have about 5,000 full-time and 4,000-5,000 part-time employees.
Quang estimated that there were another 10,000 employees working in non-member logistics firms, taking the total workforce to about 20,000 nationwide.

They come from three main sources: older, key leaders without professional training; middle-level managers who have attained tertiary education from universities in economics and foreign-trade; and fresh graduates with no experience, he said.

“There is said to be only one Ph.D. in logistics who has just returned from the Netherlands,” he added.
The preponderance of unqualified workers has sometimes created turmoil in the industry as competent people are always head-hunted by other companies, said Nguyen Xuan Diep, director of Bee Logistics.
“As recruiters increase salaries, employees are prone to frequent job hopping, which is bad for companies that pay a lot of attention to training,” he said.Solutions

Quang said Vietnam needs a national strategy for developing the logistics industry including training and re-training courses at leading universities and colleges.
“The other ways for the logistics community to improve the quality of their workforce is to open short-term courses on a regular basis like we do at VIFFAS,” he added.
Under Vietnam’s WTO commitments, restrictions on the percentage of foreign ownership and other restrictive conditions will be gradually removed.
By 2012-2014, wholly invested foreign logistics firms can be set up in the country, vastly increasing demand for a qualified workforce.
Doan Thi Hong Van, deputy head of the faculty of Tourism, Commerce and Marketing at the city’s University of Economics, said in the next few years, General Logistics and Logistics Management would be optional subjects under a credit-based program in her faculty.
Quang suggested there should be close co-operation between logistics enterprises and universities.
“Enterprises, for example, could receive interns, provide funds to build schools or send speakers regularly to seminars,” he said.

]]>Indonesian port to penalise traders causing congestionhttp://www.vpa.org.vn/indonesian-port-penalise-traders-causing-congestion/
Thu, 08 Jun 2017 15:11:31 +0000http://vpaen.vn/?p=1335The Indonesian government is looking to reduce overloading and delays at the Tanjung Priok port by penalising traders who fail to remove goods that clear Customs. A government-appointed team charged with assuring the smooth flow of exported and imported goods will arrange a series of meetings to provide solutions to the port’s overloading problems, Trade …

]]>The Indonesian government is looking to reduce overloading and delays at the Tanjung Priok port by penalising traders who fail to remove goods that clear Customs.

A government-appointed team charged with assuring the smooth flow of exported and imported goods will arrange a series of meetings to provide solutions to the port’s overloading problems, Trade Minister Mari Elka Pangestu said.

Among others, traders who secure a clearance, but choose to store their goods at the port have often contributed to the delays.

Some importers are storing their goods for several months, as it is more expensive to pick them up immediately and keep them in warehouses.